[Suspicious Marriage Brokerage]③ Regulatory Blind Spot 'Marriage Information Companies'... Ministry of Gender Equality and Fair Trade Commission "Cannot Supervise"

Domestic Companies Are Not Subject to Ministry of Gender Equality Inspections
Fair Trade Commission's Standard Terms Are Merely 'Recommendations'
Direct Remedy Procedures Must Be Followed in Case of Contract Damage
Ministry of Gender Equality to "Consider Revising Standard Terms"

Editor's NoteIn an era of low birth rates, last year's marriage rate hit a record low, yet the number of consumers seeking marriage brokerage services is increasing. This reflects the trend among the 20s and 30s generation who want to find their desired spouse without unnecessary emotional exhaustion if they are going to get married. However, as the marriage brokerage industry has rapidly expanded over the past decade, related laws have been found inadequate in properly protecting consumers. Cases have occurred where consumers pay anywhere from a few million to tens of millions of won but do not receive proper services or refunds.

231 million won per company. This is the average annual performance of 809 domestic marriage brokerage companies in 2022, as surveyed by the Ministry of Gender Equality and Family (MOGEF) this year. Although the scale of the marriage brokerage industry is increasing every year, the relevant authorities?the Ministry of Gender Equality and Family and the Fair Trade Commission?do not enforce regulations related to contracts and refunds. Unlike international marriage brokerage companies, domestic marriage brokerage companies are not subject to mandatory supervision. This is why cases of unfair contract damages have been increasing annually.

MOGEF and FTC Both Say "Not Subject to Supervision"

Marriage brokerage companies are subject to the "Act on the Management of Marriage Brokerage Businesses (Marriage Brokerage Act)" as stipulated by the Ministerial Ordinance of MOGEF and the Fair Trade Commission's "Standard Terms and Conditions for Marriage Brokerage Businesses." Both the law and the terms specify detailed procedures regarding registration, reporting, contract drafting between companies and consumers, and provision of personal information.

However, under the Marriage Brokerage Act, domestic marriage brokerage businesses are not subject to supervision and inspection. International marriage brokerage companies are required to undergo supervision and inspection at least once a year by the relevant city or district office. In contrast, domestic marriage brokerage companies only need to report to the relevant city or district office during the registration process.

Moreover, according to the 2017 amended Marriage Brokerage Act, the Minister of Gender Equality and Family is required to conduct a survey every three years on the operational status of international and domestic marriage brokerage businesses and user damage cases, and to publish the results. However, MOGEF has so far focused on understanding the status mainly of international marriage brokerage businesses. The related work is also handled primarily by the "Multicultural Families Division," which deals mainly with international marriages and multicultural families. Domestic marriage brokerage businesses are not included in user statistics, citing reasons such as "unapproved statistics."

Article 10 of the Act on the Management of Marriage Brokerage Businesses. [Source=National Law Information Center capture]

MOGEF states that contract matters related to domestic marriage brokerage companies fall under the jurisdiction of the Fair Trade Commission. A MOGEF official said, "Since a significant portion of damage cases involve contract termination penalties and contract non-fulfillment, we apply the Framework Act on Consumers and the Act on the Regulation of Terms and Conditions," adding, "MOGEF does not manage these separately; the Korea Consumer Agency provides counseling and handles relief procedures." However, Article 10 of the Marriage Brokerage Act stipulates that the standard contract for marriage brokerage businesses should be prepared by the Minister of Gender Equality and Family and recommended accordingly.

Consumers Suffering Contract Damage Must Apply for Relief Themselves

[Image source=Yonhap News]

The Fair Trade Commission also has standard terms and conditions, but these are only recommendations and not mandatory. Because of this, companies can establish their own refund policies and proceed with so-called "tricky contracts" to evade legal consequences. A Fair Trade Commission official said, "The FTC's standard terms are recommendations, so we cannot force companies to comply with refund policies," adding, "We only request that they follow them."

According to the Act on the Regulation of Terms and Conditions, if a business operator does not follow the FTC's recommendations and causes damage to multiple customers, corrective actions must be taken. However, an FTC official said, "There are over 80 standard terms, so we cannot supervise all companies in every sector." Currently, if individual damage occurs, the FTC explains that consumers have no choice but to report unfair contracts to the FTC or apply for damage relief through the Korea Consumer Agency.

Earlier in 2021, when the issue of high penalties in domestic marriage brokerage businesses was raised, the FTC revised the standard terms to allow differential penalties based on the degree of work progress, instead of uniformly imposing a 20% penalty. However, this is also a recommendation, and without separate supervision, there is no way to enforce it.

A MOGEF official stated, "To prevent user damage, we plan to consult with the FTC on revising the standard terms and consider improving the system."